Ross Stores’ Q2 Beat Sparks Guidance Raise and Accelerated Store Expansion

Ross Stores’ Q2 Beat Sparks Guidance Raise and Accelerated Store Expansion

Fri, October 09, 2026

Ross Stores (Nasdaq: ROST), the off‑price apparel retailer, reported materially stronger-than-expected second-quarter fiscal 2026 results last week, prompting a boost to its full-year earnings outlook and an accelerated pace of store openings.

Robust Q2 Performance

For the 13‑week second quarter ended August 1, 2026, Ross Stores delivered sales of $6.265 billion, up from $5.529 billion a year earlier, while comparable-store sales rose 10%. Operating income climbed to $1.104 billion—partly due to roughly $253 million in IEEPA tariff refunds—and net earnings more than doubled to $851 million from $508 million in Q2 2025. Operating margin surged to 17.6%, up from 11.5%. These figures significantly surpassed analyst projections.  

Alongside these results, the company raised its full-year earnings-per-share (EPS) forecast to $8.61–$8.77, up on the back of continued operational strength supported by tariff relief. Management also expects comparable-store sales to increase 6%–7% in Q3 and 4%–5% in Q4, with EPS guidance of $1.75–$1.83 for Q3 and $2.17–$2.26 for Q4.  

Ross plans to accelerate its store expansion strategy in 2026, raising its planned openings to 115 new locations—comprising approximately 90 Ross Dress for Less and 25 dd’s DISCOUNTS stores.  

Shareholder Return Initiatives

During Q2, Ross repurchased 1.4 million shares at a cost of $319 million, as part of its two-year $2.55 billion buyback authorization. The company remains on track to repurchase $1.275 billion worth of stock in fiscal 2026.  

Context and Implications

Ross Stores’ performance underscores continued momentum in the off‑price retail segment, driven by strong consumer demand and favorable operating conditions including tariff reimbursements. The raised guidance and boosted expansion plans suggest confidence in maintaining growth through year-end.  

Investors should watch whether the projected comps for Q3 and Q4 materialize amid tougher year-over-year comparisons, and how effectively the company executes its expanded rollout. With the next earnings report not expected until around November 19, 2026, this week’s developments offer critical insight into Ross Stores’ near-term trajectory.  

Verified Q2 Highlights & Guidance

  • Q2 sales: $6.265 billion; comps +10%
  • Operating income: $1.104 billion (includes ~$253 million tariff refund benefit)
  • Net earnings: $851 million
  • New full‑year EPS guidance: $8.61–$8.77
  • Q3 comps guidance: +6%–7%; Q3 EPS: $1.75–$1.83
  • Q4 comps guidance: +4%–5%; Q4 EPS: $2.17–$2.26
  • New store openings raised to 115 locations (90 Ross, 25 dd’s)
  • Q2 share repurchases: 1.4 million shares for $319 million

Stock data: The most recent verified closing price for ROST was $225.20 as of October 8, 2026, reflecting a 0.19% change.